FISCAL DECENTRALIZATION AND INTERNALLY GENERATED FUNDS: A STUDY OF FINANCIAL SUSTAINABILITY FOR JIRAPA DISTRICT IN GHANA

Abstract

This paper looks at implementation of the fiscal decentralisation system in Jirapa District of Ghana with keen interest on how improved IGF mobilisation could lead to financial sustainability for the Local Government area. It examines Ghana's fiscal decentralisation and the challenges some MMDAs encounter in sustainably managing their resources to perform their devolved functions. The study concludes that due to inefficiencies within the local government set up, locally generated resources for Jirapa District Assembly have since 2008 remained less than 10% of the total annual revenues, thereby making the local government almost entirely dependent on grants for its planned activities to be executed. Low IGF mobilisation from 2008 to 2012, absence of database on revenue payers, poor cooperation of revenue payers, non-payment of property rates, non-payment of rents and uncollected revenues from spot fines and burial fees were some of the militating constrains against local government financial sustainability. Measures to remove these constraints will therefore go a long way to improve local government effective and efficient operation not only in Jirapa but also other MMDAs in Ghana.